Quanta filed a lawsuit in a California court but AMD has denied that the accusations are true.
According to Quanta, AMD and its ATI Technologies subsidiary sold it chips which could not tolerate some heat levels, making them unfit for use in some NEC laptops manufactured by the company. The chips caused the NEC laptops to malfunction, the suit claims.
The lawsuit claims breach of warranty, negligent misrepresentation, civil fraud and interference with a contract.
AMD spokesman Michael Silverman told Bloomberg that the allegations were without merit. Silverman said that only Quanta had trouble with the chips and, anyway, AMD doesn’t sell them anymore.
Quanta has admitted to AMD that it used the identical chip in large volumes in a different computer platform that it manufactured for NEC without any problems.
Quanta makes computers for PC and server vendors worldwide, but NEC sells mostly to Japanese customers and it’s possible that it might have had problems caused by mass production.
Other than the announcement of the case Quanta has not provided much more information.